Robinson v. Hope

719 S.E.2d 66, 216 N.C. App. 573, 2011 N.C. App. LEXIS 2290
CourtCourt of Appeals of North Carolina
DecidedNovember 1, 2011
DocketNo. COA11-665
StatusPublished
Cited by3 cases

This text of 719 S.E.2d 66 (Robinson v. Hope) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robinson v. Hope, 719 S.E.2d 66, 216 N.C. App. 573, 2011 N.C. App. LEXIS 2290 (N.C. Ct. App. 2011).

Opinion

McCullough, Judge.

Plaintiffs appeal from an order granting partial summary judgment in favor of defendants to the extent that plaintiffs are seeking damages in the form of attorneys’ fees, litigation-related expenses, expert witness fees and other litigation costs associated with defending a prior third-party lawsuit. We affirm.

I. Background

Plaintiffs Edward G. Robinson (“Robinson”) and Rita Swanson-Robinson (“Swanson-Robinson,” collectively, “plaintiffs”) initiated the present action by filing a Summons and Complaint against defendants Joseph W. Hope, Jr. (“Hope”), and Flat Rock Realty, LLC (“FRR,” collectively, “defendants”), alleging, inter alia, breach of fiduciary duty and violation of the Unfair and Deceptive Trade Practices Act [574]*574(“UDTPA”). In the present action, plaintiffs seek damages in the form of attorneys’ fees, litigation-related expenses, expert witness fees, and/or other litigation costs associated with defending a prior action brought against them by Elizabeth Runnels (“Runnels”), the buyer of a residence located on Robinson’s real property. Runnels sued plaintiffs for breach of contract, alleging, among other things, that plaintiffs had failed to obtain a permit for a residential septic system and that plaintiffs had failed to construct the residence in conformity with the North Carolina Residential Building Code. FRR was the realty company that had listed the property, and Hope served as plaintiffs’ real estate agent in the sale of their property to Runnels. The facts ■underlying the prior action are more fully set forth in our prior opinion in Runnels v. Robinson, No. COA10-923 (N.C. Ct. App. May 17, 2011).

In their complaint against Hope and FRR, plaintiffs allege that all communications with Runnels or her real estate agent concerning Robinson’s property were made on Robinson’s behalf by and through Hope and FRR. Accordingly, plaintiffs allege that Hope and FRR “had a fiduciary duty to fully and accurately communicate all material facts concerning [Robinson’s property] to third parties.” Specifically, plaintiffs allege that “with the help and guidance of, and in reliance upon Hope and Hope’s advice as a realtor,” Robinson completed a residential property disclosure form that was sent to Runnels by Hope. However, given the manner in which the form was completed, plaintiffs allege that the resulting disclosure statement “was confusing and unclear, and subject to misinterpretation by a potential purchaser.” Plaintiffs further allege that Hope prepared advertising materials that incorrectly described the building on Robinson’s property as a “three bedroom, one bath, home,” and that Hope specifically informed Runnels-that there existed a permitted septic system for a three-bedroom residence on Robinson’s property. Plaintiffs’ complaint states that Hope’s willful and/or negligent misrepresentations to Runnels constituted a breach of fiduciary duty and a violation of the UDTPA.

On 29 November 2010, defendants filed a motion for summary judgment seeking dismissal of plaintiffs’ complaint. Following a hearing on the motion, the trial court granted partial summary judgment in favor of defendants “to the extent that Plaintiffs are seeking to recover their attorneys’ fees, litigation related expenses, expert witness fees or other litigation costs associated with defending the Runnels lawsuit.” The trial court denied summary judgment to the extent that plaintiffs are seeking to recover their own personal damages related to the alleged breach of fiduciary duty and unfair trade [575]*575practices by defendants. The trial court’s order granting partial summary judgment was filed on 5 January 2011.

Thereafter, on 9 March 2011, plaintiffs filed a voluntary dismissal without prejudice as to their remaining claims in order to bring the matter to final judgment for the purpose of allowing the trial court’s partial summary judgment order to be appealed. Accordingly, on 9 March 2011, plaintiffs filed a written notice of appeal to this Court from the trial court’s order granting partial summary judgment in favor of defendants.

II. Standard of Review

Summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law.” N.C. Gen. Stat. § 1A-1, Rule 56(c) (2009). Thus, “[s]ummaryjudgment is properly granted when it appears that even if the facts as claimed by the non-movant are taken as true, there can be no recovery.” Howard v. Jackson, 120 N.C. App. 243, 246, 461 S.E.2d 793, 796 (1995). We review the trial court’s ruling on a motion for summary judgment de novo. Carcano v. JBSS, LLC, 200 N.C. App. 162, 166, 684 S.E.2d 41, 46 (2009).

III. Attorneys’ fees as damages

“ ‘ “It is settled law in North Carolina that ordinarily attorneys fees are not recoverable as an item of damages or of costs, absent express statutory authority for fixing and awarding them.” ’ ” Eakes v. Eakes, 194 N.C. App. 303, 312, 669 S.E.2d 891, 897 (2008) (quoting Baxley v. Jackson, 179 N.C. App. 635, 640, 634 S.E.2d 905, 908 (2006) (quoting Records v. Tape Corp. and Broadcasting System v. Tape Corp., 18 N.C. App. 183, 187, 196 S.E.2d 598, 602 (1973))). Plaintiffs’ sole argument on appeal asks this Court to create a judicial exception to this well-established rule and allow the recovery of attorneys’ fees and other litigation-related expenses as compensatory damages when the alleged wrongful conduct of the defendant necessitates a third-party lawsuit. Plaintiffs concede they are thus asking this Court to enunciate a new rule of law in North Carolina.

We previously addressed this argument in the case of Martin v. Hartford Accident and Indemnity Co., 68 N.C. App. 534, 316 S.E.2d 126 (1984). In Martin, the plaintiff, a cattle dealer, brought an action against the defendant indemnity company who, as a surety, issued a [576]*576bond to cover purchases of livestock made by a third-party purchaser. Id. at 535, 316 S.E.2d at 127. The plaintiffs action alleged that the indemnity company had refused to honor the bond guaranteeing the purchase price, which necessitated a lawsuit directly against the purchaser. Id. Thus, the plaintiff sought to recover from the defendant indemnity company the attorneys’ fees the plaintiff had incurred in bringing the earlier action against the third-party purchaser. Id. The trial court granted summary judgment in favor of the defendant indemnity company, and the plaintiff appealed the decision to this Court. Id.

On appeal, the plaintiff in Martin requested the same relief from this Court that plaintiffs in the present case now seek:

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Bluebook (online)
719 S.E.2d 66, 216 N.C. App. 573, 2011 N.C. App. LEXIS 2290, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robinson-v-hope-ncctapp-2011.